Thursday, July 19, 2007

And It's not the banks that are responsible...consumers request banks to supply liquidity...The business of banking is sustained by supplying consumers with liquidity...

You all want more and more money and you all certainly are not going to happy with the mines can't keep up with demand excuse when the mines run dry.

It takes Trillions of dollars to sustain the global circulation currently...the demand for more money by consumers globally is growing by about 3 Trillion dollars every 90 days...If it required one ounce of silver to construct one dollar...3 trillion ounces of silver would need to be produced every 90 days to supply the current demand for money if silver was required as a component in it's construction.

3 Trillion dollars or so globally every 90 days just to keep the whole soap opera you all play your parts in functioning...Failure to supply the demand for money globally will result in the implosion of the global system...

When inflation greater than previous inflation to maximum potential is reached...The system will then begin inflating less than previous inflation to maximum potential...During what is generally called the inflationary phase...consumers demand more and more until it becomes impossible to demand more and more and then they demand less and less.

And just as you all are responsible for the ride up...You will all be responsible for the ride down.

look around...all that you see is basically sustained by inflation greater than previous inflation...Once maximum potential is reached...the whole mass delusion that is dependant upon inflation greater than previous inflation will shatter.

The ruins of Rome are what you see after maximum potential is reached....WW2 is also the type of thing you see after maximum potential is reached. When given a choice you all will cry for more and more and more...until you are forced to cry for less and less...

fortunately or unfortunately due to the construction of the Universe...You all will be forced at some point to cry for less and less when it becomes impossible to cry for more and more...

You can of course continue crying for more and more after inflation greater than previous inflation to maximum potential reaches maximum potential...But you are not going to get more and more until inflation less than previous inflation to maximum potential reaches maximum potential.

Inflation does last forever...But inflation greater than previous inflation does not last forever...Just as inflation less than previous inflation does not last forever.

Within the Universe they exist forever...but don't last forever.

The infinite inflation wave...The top rides it and the bottom drown in it...been like this for 1000's of years. It's why the top installs leaders...Puppets hang from strings...like Saddam...

When it comes time...the top will sell you all the rope you hang yourselves with.

If I choose to lie to you and you choose to believe the lie I told to you is truth...You are responsible for that. Since you all knowingly and unknowingly lie your asses off to each other day after day...You all are oblivious as to what Truth is. You all basically spend your lives speculating caught in a maelstrom of lies...

Then you reach maximum potential and cease to exist.

You currrently depend upon chopping down trees faster than they regrow to sustain the delusion that you have the power to imagine more trees into existance to sustain the delusion.

That is the illusion you want me to believe is greater reality. I'm well aware that our awareness of the Universe is not inside the Universe and is not constrained by it. Unfortunately that is why what you think you can accomplish within the constraints of the Universe does not work out when put into practice within the Universe.

Attempting to tranform your imagination into reality is what got us into this situation.

I'm well aware that inflation greater than previous inflation that lasts forever can be sustained forever in your imagination...It can't be inside of the Universe...And the very instant you choose to think, believe, and have faith that it can be...The shattering of that delusion is certain and inevitable.

All the ruins coating the suface of the Earth are the logical conclusion of the choice to think believe and have faith that inflation greater than previous inflation lasts forever inside the Universe.

You may be able to sustain the required power to sustain denial...I try to not power denial...The longer you power it...the worse the consequences will be when you can no longer power it. Your best bet is to hope to cease to exist before you are forced to accept what you are currently powering the denial of.

That of course will not help everyone else you leave behind...but you don't care about all of them...They are all just illusions...figments of your imagination to use and abuse how you see fit.

Wednesday, July 18, 2007

"Due to Bretton Woods the global trade medium of exchange was made the US Dollar in 1944...

A large portion of Chinese taxpayer dollars are US dollars that US consumers give the Chinese for all the stuff the chinese make and export to the USA...

The USA is the largest consumer on the planet...The single biggest customer...If the USA goes down...China collapses like a house of cards...

"We bash them publicly, but behind the scenes we go hat in hand seeking their help."

The Chinese bash the US publicly as well...Both fool their populations into thinking that they are independent nation states...Since both require nationalism to maintain control over their domestic populations...

The USA and China are just huge economic zones within a centuries old Global economic empire based in Europe.

Prior to the 1933-1945 bankruptcy reorganization of the Global system...The British had the same arrangement with China and the British Pound was the global trade medium of exchange...

"For a more in depth analysis of the tenuous position of the Americana economy and U.S. dollar denominated investments, read my new book “Crash Proof: How to Profit from the Coming Economic Collapse.”"

Peter Schiff is riding in the same car speeding towards the brick wall that we all are...It's not crash proof unfortunately.

It's like signing up people on the titanic for life insurance and then drowning with them...

The only persons that can reinflate are consumers...desperate consumers requesting commercial banks to manufacture greater amounts of money...greater amounts than previously...

Inflation greater than previous inflation to maximum potential...

If the consumers fail to request the required amount of money to be manufactured by the commercial banking system to sustain inflation greater than previous inflation to maximum potential

Then maximum potential will have been reached...At which point inflation greater than previous inflation TRANSFORMS into inflation less than previous inflation to maximum potential...The observation of this phase of inflation is called deflation.

Not borrowing...requesting the commercial banks to manufacture money...But Yes as long as possible or greater and greater amounts to maximum potential...And when maximum potential is reached...Less and less amounts to maximum potential...

So far since the USA became the USA...consumers have requested the commerical banks directly and indirectly to manufacture 46 Trillion dollars...That's the total money supply of the USA...The FED calls it Total Credit market debt...

During the same time...The US Federal Government has approved the issue of 8.8 Trillion dollars worth of bonds and "Borrowed" 8.8 Trillion dollars of the 46 Trillion dollar money supply of the USA...

Or around 19% of it...Durring WW2 the US Government borrowed slightly over 50% of the total money supply to sustain the war effort...

The long mortage rate dropped to 5.360% in 2003 the Federal funds rate hit 0.98% and 1 Year treasuries hit 1.01% around that time...

Volume...at a mortage rate of 4% the one year Treasury would have to drop to almost zero...Like in Japan where the yield on the Japan Premium 3 month Bond hit 0.017% in 1999...

Not because the bank of Japan set rates that way...because there was enough volume to obtain a yield from from rates that low...

Same thing in the USA...there needs to be volume to support lower yield rates...If there is not then rates will have to keep rising in search of a yield...

Like your current income...It's a yield...and if you don't yield enough from your current employment to pay all your bills then you are finished...Inevitably doomed.

You will have to begin cutting back on spending...

Like stopping the buying of real estate for greater prices than previously and start buying real estate for lower prices than previously...

And in the USA...real estate has been the Number one engine driving monetary inflation for the past 36 years..."

Prior to the collapse of the stock market in 1929...Real estate collapsed...a large amount of the money leaving real estate in 1928 headed into the stock market...In search of yield."